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HomeMy WebLinkAboutFin & Corp Svcs - 2008-12-01 SFINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 1, 200$ CITY OF KITCHENER The Finance and Corporate Services Committee met this date commencing at 7:25 p.m. Present: Councillor J. Smola, Vice-Chair Mayor C. Zehr and Councillors G. Lorentz, J. Gazzola, K. Galloway and C. Weylie. Staff: C. Ladd, Chief Administrative Officer D. Chapman, General Manager, Financial Services & City Treasurer T. Speck, General Manager, Corporate Services P. Houston, General Manager, Community Services J. Willmer, Interim General Manager, Development & Technical Services T. Beckett, Fire Chief G. Murphy, Director of Engineering M. May, Director of Communications & Marketing S. Adams, Director of Community & Corporate Planning M. Hildebrand, Director of Community Programs R. LeBrun, Director, Financial Planning & Reporting J. Billett, Committee Administrator 1. 2009 OPERATING BUDGET -PUBLIC CONSULTATION SESSION Councillor J. Smola welcomed members of the public advising that this meeting was being held to consult with the public regarding the 2009 Operating Budget. It was noted that the draft budget being presented has been prepared by staff with proposed increases in certain areas but the budget has not been reviewed by Council as of this date. Council will review the 2009 Operating Budget at a special meeting of the Finance & Corporate Services Committee on December 8, 2008. Mr. D. Chapman presented an overview on how the City's budgets are developed, the revenue sources, the operating and capital expenditures, the City's debt level and the challenges faced in developing an appropriate budget. Mr. Chapman also provided information on National and local trends as a result of the current economic crisis and the potential impact of economic downturn on the Corporation. It was noted that staff have taken a number of mitigating measures in response, which include: no increase to discretionary budget lines; spending cuts; increased fees; no tax supported FTE additions; no program expansions; reduction of reliance on the tax stabilization reserve; recognition of the importance of the City's capital budget as an economic stimulus tool; and maintaining commitment to a long-term economic development strategy. Staff also identified efficiencies and reductions to reduce the overall base increase below the budget guideline, resulting in savings to the Corporation. Mr. Chapman advised that at the start of the budget process the projected tax levy increase was at 6.83%, that percentage having now been reduced to 5.34% and staff is continuing to work to identify further reductions to reduce the tax levy increase to 3.27%. Messrs. Chris Bennett and Keith Beavers, attended on behalf of the Region of Waterloo Swim Club (ROW), regarding the proposed closing on December 31, 2008 of the Wilfred Laurier University (WLU) 50m competition swimming pool. The delegation noted that the pool is a valuable resource to the community, is home to Olympic champions and is used by numerous sports groups and the community at large. Financial support from all levels of government is being sought but has not yet been successful. It was noted that $2.2M is needed to allow the WLU pool to continue to operate for another 5-year period and if found, WLU will continue to pay operating costs of $300,000. annually. Local governments are being requested to commit to $440,000. over the 5-year period, and grant funding is being sought from senior levels of government. The delegation asked that Kitchener take this opportunity to invest in youth/amateur sports by financially contributing to the cause that will allow this facility to remain open. Mayor C. Zehr inquired as to the cost to build a new 50m, 8-lane competition pool and Mr. Bennett responded that based on recent facilities built in the United States such a facility can be built for $20M or less and in Northern Europe, large facilities of modest design have been constructed for $5-6M. Mr. Bennett added that Kitchener's Harry Class Pool is well built and successfully operated, advising that ROW has asked to investigate the feasibility of converting the facility to a competition pool by adding a compressed air dome at an approximate cost of $1.2M. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 1, 200$ - 1$6 - CITY OF KITCHENER 1. 2009 OPERATING BUDGET -PUBLIC CONSULTATION SESSION tCONT'D) Mayor Zehr inquired as to whom the request for the $2.2M required for the WLU pool is being made. Mr. Bennett responded that the City of Waterloo has been approached, along with members of the Federal/Provincial Parliament but indication is that there is no funding available. Mr. Bennett suggested that $2.2M is geared toward high-end renovations and suggested that the groups could work with WLU to reduce costs in the design details. Mayor Zehr advised that it was his understanding that WLU officials have not guaranteed that the pool will remain open for the entire 5-year period even with the $2.2M as there are air quality issues yet to be addressed. Mr. Bennett acknowledged that he was also aware of these comments; however, his group is of the opinion that the funds can be amortized over a longer period with modest renovations and efficiencies in operation of the pool. Councillor K. Galloway inquired if funding is being sought through the private sector and community donations. Mr. Bennett responded that this is also being pursued but given the current economic situation the timing is not good for fundraising campaigns. He added that the sports groups will continue pursuits in this regard despite economic times and have not yet given up hope. Councillor J. Gazzola inquired if the groups have made formal application for funding to the City with the required background information. Mr. Bennett pointed out that the sports groups are in a unique situation, as they are tenants of the WLU pool but have been asked by WLU to come forward to aid in seeking the necessary funding. He stated that his group is not privy to all of the studies and financial background of WLU but was of the understanding WLU is active in providing this information. Mr. Bennett added that WLU has made his group aware of a significant deficit in the University's repair/maintenance budget and as such they are closely watching expenditures. He pointed out that WLU has been a generous host to numerous sports groups and the community at large and is calling on the community to contribute funds toward keeping the pool facility operating. Councillor Gazzola commented that the City has contributed significantly in recent years to the Universities and asked if Kitchener is expected to provide all of the $440,000. requested. Mr. Bennett responded that the amount is not all to be applied to Kitchener but rather is intended to be a cost sharing initiative among the area municipalities. Becca Cuff and David Hughes, representing the Wilfred Laurier Swim Team and Brittany Shaw, representing Wilfred Laurier life guards and pool employees, spoke in support of the request for funding. The delegation commented that aquatics has provided opportunity for youth to attain skills that builds self-confidence and the discipline to maintain good academic standing; and provides aunique/flexible employment opportunity that allows youth to interact with the community while providing a valuable service. Mayor C. Zehr questioned how the City would be able to fit any portion of the requested $2.2M within its capital budget; or fund a new pool facility with associated operating costs. Mr. D. Chapman advised that within the 10-year Capital Forecast there is no capacity to provide funding in the next 5-year period for this initiative without adverse impact to existing projects. He added that in the last 5-year period of the Forecast there is not enough to fund the additional dollars and if added, would require assessment and re-prioritizing of projects. He further noted that associated operating costs would have an additional direct levy impact of approximately 5-6%. Councillor J. Smola requested clarification of the proposed retrofit to the Harry Class Pool. Ms. P. Houston acknowledged that staff is aware of the sports' groups request to investigate retrofitting the Harry Class Pool She advised that this will require a full feasibility study to determine if the proposal will work technically and what impact it may have to the neighbourhood. She added that funding would be required to proceed with the feasibility study which would take approximately six months to complete. Councillor J. Smola requested the delegation to submit a written report to the City Clerk for inclusion in the Committee's 2009 Operating Budget package, which is to be considered on December 8, 2008. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES DECEMBER 1, 200$ - 1$7 - CITY OF KITCHENER 1. 2009 OPERATING BUDGET -PUBLIC CONSULTATION SESSION tCONT'D) Councillor G. Lorentz suggested that the Chief Administrator undertake discussions with the other area municipalities to open lines of communication and determine what, if anything, can be done to resolve this matter. Ms. C. Ladd advised that discussions have been held with area municipalities and local representatives of senior levels of government in an attempt to find a co-ordinated solution. She advised that to date discussions have not met much success; however, these discussions will continue. Councillor J. Gazzola inquired as to the feasibility of obtaining financial background to clarify matters concerning the funding request. Ms. P. Houston agreed to provide a copy of the letter received from WLU regarding their funding need for $2.2M. She added that the City of Waterloo undertook a secondary assessment of the $2.2M to determine potential for reductions and agreed to contact Waterloo to obtain this information. Mr. Albert Norris attended to support the City's environmental assessment study initiative for Victoria Park Lake and submitted pictures of himself and his family skating on the lake in 1942. Mr. Norris proposed that Council consider establishing a program to aid young business entrepreneurs in locating to the Centre Block Development. Mr. Ed Redgwell asked that Council take apro-active approach towards setting this year's budget, commenting on a number of capital projects proposed in the 10-year Capital Forecast. Mr. Redgwell further asked that Council produce a 0% tax levy increase similar to that produced in 2006. 2. ADJOURNMENT On motion, the meeting adjourned at 8:50 p.m. J. Billett Committee Administrator